In 2021, Israeli businesses filed for a record number of IPOs on both U.S. and Israeli stock exchanges. Although IPOs are expected to be slower this year due to recent geopolitical and economic turbulence, the number of Israeli companies entering public markets remains extraordinary. Here are three companies we are closely monitoring as they prepare to go public.
Orcanos Ltd. brings a new way to comply with regulations that shorten a product's time to market. It provides integrated solutions to assist businesses in managing their product development processes in regulated industries, such as medical device development. Companies in highly regulated industries struggle to produce and market their products faster because complex regulation takes time. Although management systems support the entire product lifecycle process, many providers ignore compliance management as part of the product lifecycle management system due to the cost structure. However, management systems are ineffective without compliance management, as compliance is crucial in helping businesses shorten product development cycles and commercialize products more efficiently. As a result, a few companies, such as Orcanos, is taking the lead in filling the market gap by helping businesses manage their day-to-day compliance obligations, eliminate supply delays, and manage risk.
Orcanos provides an integrated software solution for Application Lifecycle Management (ALM) and Quality Management Systems (QMS), risk management, document control, and a customer support center, all of which help reduce product time-to-market. The platform ensures CE-mark application preparation, FDA submissions, and audit readiness by shifting the majority of manual paperwork into a process-automation tool. Working with Argo Medical, Medset, Zimmer MedizinSysteme, and Mazor Robotics, Orcanos has established itself to become a prominent player in this market. The company's innovation and experience in regulated, high-tech industries are paying off. It seems that Orcanos plans to go public and has entered into a definitive securities exchange agreement with A-Labs Capital II Corp. and an amalgamation agreement with a special purpose company.
Freightos Limited, launched in 2016, is a SaaS-based international freight platform that allows for online quoting, booking, and cargo management. Leading carriers, freight forwarders, and shippers such as CEVA Logistics, Nippon Express, Hellmann World Logistics, Sysco Foods, Panasonic USA, and Marks & Spencer use Freightos AcceleRate, a software-as-a-service to automate pricing and routing. Through WebCargo, the company also offers multimodal freight sales and booking automation to freight forwarders and carriers. WebCargo is a digital air cargo platform that connects over 2,000 global logistics providers with top-tier airlines such as Air France, KLM, British Airways, and Etihad Airways. It allows logistics providers to obtain on-demand pricing and capacity from airlines, conduct real-time eBookings, and provide excellent customer service.
The company has attracted over 10,000 importers/exporters, 3,500 freight forwarders, and 200 carriers, facilitating hundreds of thousands of international freight bookings each year by making global trade seamless. Freightos has amassed the world's largest global database of multimodal freight rates, ensuring industry transparency. For instance, the company is the calculating agent for freight shipping price indexes such as the daily 40' container index and the Freightos Baltic Index (FBX), which has futures trading on the CME (Chicago Mercantile Exchange). The company continues to grow thanks to its efforts to digitalize the global freight industry and plans to go public through a business combination with Gesher I Acquisition Corp.
NurExone Biologic Ltd., founded in 2020, is developing a treatment for traumatic damage to the central nervous system based on breakthrough biological extracellular vesicles (E.V.) technology. This startup aims to use new Exosome-based technology and smart delivery systems to change the way spinal cord injury (SCI) is treated worldwide. NurExone's approach focuses on exosome technology and treating SCI patients using a smart delivery platform. According to the management, the mixture, intended to be medically administered by the nose, has a natural effect on neuron damage.
ExoPTEN, the company's proprietary technology, was shown in animal studies to promote exon-growth functional recovery, or in other words, nerve regeneration, when administered intranasally. This suggests that NurExone's groundbreaking Exosome technology has the potential to provide a much-needed treatment for Spinal Cord Injuries (SCI). NurExone has signed an exclusive worldwide license agreement with Technion, Israel Institute of Technology in Haifa, to take responsibility for the technology's development, clinical studies, and commercialization.
For years, exosome technology has piqued the interest of forward-thinking investors. According to a report by Mordor Intelligence, the Exosome market is predicted to grow at a compounded annual growth rate (CAGR) of 27.89% between 2022 and 2027. As the global market grows, investors may find emerging companies like NurExone Biological an attractive option. The company has agreed to a reverse takeover with EnerSpar Corp. and recently began trading on the TSXV.
From Fiverr to Teva Pharmaceutical, many Israeli companies have gone public in the North American markets in the past, and some of these Israeli companies are considered industry leaders in their respective domains today. Israel has always been home to innovative products. The three companies introduced in this article are a few of the most innovative, young companies planning to go public soon.
This article was written in cooperation with The Future Markets Research Tank